Fall of 0.6% for June as summer sellers try to entice buyers to purchase
The average price of property coming to market has dropped to its lowest June price in 14 years, opening up one of the best windows of opportunity for first-time buyers, according to the latest House Price Index from Rightmove.
A 0.6% fall (-£2,113) this month takes prices to £376,191, as sellers try to entice summer buyers. Prices are 0.5% below a year ago.
Number of properties remains at historic high
Rightmove says the number of homes for sale remains at a historically high level for this time of year, helping fuel price competition. Sellers are also competing against distractions such as the World Cup, as well as recent heatwaves.
Rightmove figures show that buyer demand across May was down by 10%. However, it says that its real-time data shows this figure was impacted by the May half-term heatwave, which put many prospective buyers off househunting to enjoy the sun instead.
The number of newly listed homes coming to market is down 5% compared with this time last year but is up 6% on 2024 and up 12% on 2023.
Meanwhile, overall sales activity remains steady, with sales agreed down 6% year-on-year but virtually level with 2024 and around 5% above 2023.
Meanwhile, the company said that mortgage affordability has improved slightly this month. The average two-year fixed rate has dropped to 5.07% from 5.18% last month, according to Rightmove’s daily mortgage tracker.
Polly Ogden Duffy, managing director at John D Wood & Co London, said the figures were particularly encouraging for new buyers. “For first-time buyers, this represents one of the better windows of opportunity in recent years, with more choice and greater scope to negotiate,” she said.
Change in buyer behaviour
Collen Babcock, property expert at Rightmove, said: “While the summer market has come a bit early this year, overall activity is still within a typical historic range. What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions. Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price.
“It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment. While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”
